The Alanbrookes Group Spring Forecast 2026
The Chancellor held the Spring Statement on 3 March 2026.
The government has been keen to have only one tax event per year (the Budget) and so the Spring Statement was intended to provide an interim update on the economy and public finances.
Whilst the Chancellor did meet the commitment not to make major tax announcements, there was plenty to say on the economy more generally.
Looking back a year, the previous Statement focused on a commitment to increasing defence spending, cuts to the welfare state and economic growth. Over the last year, the majority of those cuts to welfare spending were not supported by backbench MPs and the economy has continued to grow slowly, so what did the Chancellor have to say a year on?
The strap line was that current policies mean that the government has the right economic plan for Britain. The Chancellor stated that the ‘…Spring Forecast has shown that the government’s economic plan to cut the cost of living, cut national debt and grow the economy, is the right one.’
Whilst the speech was highly political, the Chancellor specifically referred to three particular areas to show that the government’s policies were working:
Cutting the cost of living - the OBR’s forecast shows inflation, borrowing and debt interest are falling, whilst investment is rising.
Cutting borrowing - the OBR’s forecast shows borrowing is down by nearly £18 billion compared to the autumn, with borrowing this year set to be the lowest in six years and falling below the G7 average.
Growing the economy - the OBR’s forecast shows GDP per person is now set to grow more than was expected in the Budget, with growth of 5.6% over the parliament.